Wow…this stock market is quite relentless in its climb. Just when you think that earnings and revenue have plateaued and cannot grow significantly, investors pile in more money and drive those valuations to a higher level. The markets have hit newer all-time highs last week and push the valuations to the nosebleed section.
Outlook for June 2017
We are getting into the summer months now and the sell-in-May mantra doesnt really seem to apply anymore. As this relentless climb continues, I stay wary of the overall broad market. I saw an interesting stat recently that the big five tech companies (Apple, Amazon, Alphabet, Microsoft & Facebook) have added more in their market cap value than the rest of S&P 500 companies put together. That’s the reality these days. The whole market stands on the legs of these companies and that does not give me confidence one bit that when they falter, its not going to be mayhem all around.
However, I keep putting some of my funds at work in the index funds month after month, but as regular readers may have noticed, there are not too many Buys and Sells these days. Nothing really stands out as a great opportunity right now, so I also keep accumulating more cash in my brokerage accounts waiting for better opportunities.
Looking for some investment ideas? Be sure to check out the Top 2017 Investment Picks from the blogging community.
Our current portfolio looks like this:
As it stands, our portfolio diversification is as shown below.
What is your outlook for June 2017? What are your thoughts on the stocks mentioned here? Do you own them or are they on your watchlist? What do you think of the current market levels and buying here? Make sure to leave a comment below.
Disclosure: Our full list of holdings is available here.